Data Centers: Daily Notes | June 1, 2026
Microsoft enlarges its Cheyenne footprint by another 420 acres, California's Senate moves to make data centers cover their own grid costs, and four more communities slam the brakes with moratoriums or outright rejections.
At A Glance 🔽
- California Senate passes SB 886 and SB 887 to push grid upgrade costs onto data centers.
- New Jersey Gov. Mikie Sherrill outlines four data center policies covering grid costs, energy and water disclosure, municipal agreements, and labor standards.
- Pennsylvania state Rep. Marla Brown floats a GOP-backed proposal to block data centers on farmland.
- Cheyenne, WY: Microsoft adds another 420 acres just weeks after announcing a 3,200-acre expansion.
- Brookhaven, NY moves an 18-month moratorium forward for a July 16 vote.
- Daviess County, KY Fiscal Court approves a one-year moratorium.
- Merrillville, IN council passes a one-year moratorium effective June 1 through May 31, 2027.
- La Pine, OR city council unanimously rejects a 20-megawatt data center proposed by Boxminer.io.
- Hillsborough, NC town board unanimously enacts a 60-day moratorium on AI data centers and data mining facilities.
- Box Elder County, UT rejects three applications to put data center referendums before voters.
California
The California Senate passed a pair of bills this week aimed at making data centers cover their own electricity infrastructure costs instead of passing them to ratepayers. Both now head to the State Assembly.
SB 886 directs the California Public Utilities Commission to set up a special tariff so that transmission and infrastructure costs to connect large data centers are fully recovered from the tech companies themselves.
SB 887 offers an incentive: developers can qualify for Environmental Leadership Development Project certification, which speeds environmental reviews, but only if they meet strict water conservation, clean energy, and full infrastructure funding criteria. The bill also clarifies that data centers are not exempt from the California Environmental Quality Act.
New Jersey
Gov. Mikie Sherrill rolled out four proposals this week to tighten oversight of large-scale data center projects in a state that already hosts more than 80 facilities operating or under development.
The core proposal would require future operators to contract directly with power generators and absorb the cost of grid upgrades, rather than pushing those expenses onto residential customers. A companion piece (Bill S2274) would impose recurring disclosure requirements on facility energy and water usage. The administration is also backing statewide standards for agreements between municipalities and developers, with commitments tied to local infrastructure improvements, community amenities, environmental mitigation, and technology investments in schools and workforce programs. Project approvals would be expected to require local union and trade labor at prevailing wages.
Pennsylvania
A GOP-backed proposal in the Pennsylvania General Assembly would prohibit building data centers on farmland, adding to a stack of pending bills aimed at regulating the industry.
"I will soon be introducing legislation that will not allow data centers to be built on prime farmland where normal agricultural operations are currently taking place."
Rep. Marla Brown, "Not Allowing Data Centers Be Built on Farmland"
Farming contributes $132 billion annually to Pennsylvania's economy and supports nearly 600,000 jobs, according to the state Department of Agriculture. Pennsylvania leads the nation in farm preservation with more than 650,000 acres protected across at least 6,600 farms as of 2025. Even so, the state lost around 220,000 acres of farmland between 2017 and 2022, roughly 3%, while the total number of farms fell 8%.
Brown's idea joins other Pennsylvania measures that would define data centers in the state's Municipalities Planning Code, set up a new gubernatorial office to dictate local data center land use rules, and mandate community benefits agreements between local governments and developers. The Pennsylvania Farm Bureau opposes the building of data centers on prime farmland and is waiting for Rep. Marla Brown to formalize her proposal.
Cheyenne, Wyoming
Local Community Team
Microsoft has added another 420 acres to its planned Cheyenne data center expansion, just weeks after announcing a 3,200-acre footprint that would triple its presence in the city. The new additions come in two pieces: a 385-acre parcel east of College Drive near Cheyenne Business Parkway, along the eastern edge of Laramie County Community College, plus a 35-acre piece next to the North Range Business Park where Microsoft already operates data centers.
Cheyenne LEADS Executive Director Betsey Hale said the larger parcel is bordered by the Bison Business Park, a large solar field, gravel pits, and roughly 5,000 acres of oil and gas operations. Microsoft held a voluntary meeting Wednesday night with nearby landowners, framing its growth under a new "Community First Infrastructure" banner that includes a pledge to end non-disclosure agreements with local governments.
Brookhaven, New York
Brookhaven officials moved to advance an 18-month moratorium on AI data centers after community outcry in Yaphank over rumors of a proposed facility. The Town Board approved the moratorium Thursday to move it forward for a vote following the July 16 town board meeting.
Town Supervisor Dan Panico said there are no current plans to build a data center in Brookhaven, but acknowledged that an entity is working with the New York Independent System Operator and the Long Island Power Authority on a potential application. Separately, the town's Industrial Development Agency passed a resolution declining to accept AI-related abatement or incentive applications.
Residents packed the town hall to call for a full ban. Panico said any formal application would face robust public input and environmental review and that he supports a regional approach to future AI facility siting.
Daviess County, Kentucky
Daviess County Fiscal Court approved a one-year moratorium on data center applications last Thursday, after speculation about a possible Owensboro project drew dozens of residents to consecutive city and county meetings. Judge-Executive Charlie Castlen said the pause gives the county time to study a rapidly evolving industry.
On Youtube: Daviess County Fiscal Court Meeting, Thursday, May 28, 2026
Owensboro resident Maranda McDaniel has been organizing a petition against data centers in the county and attending meetings to voice opposition. County leaders said they plan to consult with experts and other Kentucky counties during the moratorium.
Merrillville, Indiana
On Youtube: Merrillville Town Council Meeting, May 26, 2026
The Merrillville Town Council approved a one-year moratorium on data center construction at its May 26 meeting, running from June 1 through May 31, 2027.
Council President Rick Bella said Merrillville is in a position to learn from a major data center campus under construction in neighboring Hobart before deciding how to handle proposals locally. The Northwest Indiana Forum will host an educational meeting at 5:30 p.m. on June 11 at the Dean and Barbara White Community Center, 6600 Broadway, featuring industry experts and a chance for residents to question them directly.
La Pine, Oregon
La Pine's city council rejected a 20-megawatt data center proposed by developer Boxminer.io on Wednesday, May 27, after a packed council meeting in the Central Oregon city of 2,500. The project would have sat on 19.5 acres in the La Pine Industrial Park, which is jointly owned by private parties and Deschutes County.
Developer Jeff Keller projected $800 million in investment and as many as 200 full-time jobs, though he later lowered the jobs estimate to 50 or 60. City Manager Geoff Wullschlager presented a report Wednesday finding millions of dollars in discrepancies between Keller's revenue projections for the city and Midstate Electric versus the city's own numbers. The 20-megawatt draw is about 15 times the household electricity use of a typical city the size of La Pine.
Hillsborough, North Carolina
The Hillsborough town board approved a 60-day moratorium on approving new AI data centers and data mining facilities at its Wednesday meeting. The town's unified development ordinance contains no language governing that particular land use, and the pause gives staff time to draft governance language before any application arrives.
Commissioners said they are not opposed to data centers outright but want to understand the potential impacts on housing values, infrastructure, and the surrounding community before approving one. Hillsborough joins similar votes by the Orange County Commissioners, Chatham County Commissioners, and the Durham City Council, all within the last few months.
Box Elder County, Utah
Box Elder CountyBox Elder County officials rejected three applications that sought to place data center referendums on the ballot, ruling that the commission's data center decisions cannot be challenged through a public vote.
County Attorney Stephen R. Hadfield said the resolutions in question were administrative actions rather than laws, which makes them ineligible for referendum under state law. County Clerk Marla Young said her office is bound to follow that interpretation. The applications were received earlier this month and triggered a fiscal impact and legality review before being turned down Thursday.
Brenna Williams, spokeswoman for the citizen group Box Elder Accountability Referendum, said BEAR plans to challenge the decision in court and has multiple contingency plans if litigation does not succeed. Residents remain split, with some pushing for a ballot question over the project's scale and others arguing the data center would help the local economy.
Dane Artisola
Covered last May 25, 2026; Hundreds rallied at the Utah Capitol against the project.
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